Correlation Between Amylyx Pharmaceuticals and Haleon Plc
Can any of the company-specific risk be diversified away by investing in both Amylyx Pharmaceuticals and Haleon Plc at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Amylyx Pharmaceuticals and Haleon Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amylyx Pharmaceuticals and Haleon plc, you can compare the effects of market volatilities on Amylyx Pharmaceuticals and Haleon Plc and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Amylyx Pharmaceuticals with a short position of Haleon Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amylyx Pharmaceuticals and Haleon Plc.
Diversification Opportunities for Amylyx Pharmaceuticals and Haleon Plc
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amylyx and Haleon is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Haleon plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon plc and Amylyx Pharmaceuticals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Amylyx Pharmaceuticals are associated (or correlated) with Haleon Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon plc has no effect on the direction of Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Haleon Plc go up and down completely randomly.
Pair Corralation between Amylyx Pharmaceuticals and Haleon Plc
Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to under-perform the Haleon Plc. In addition to that, Amylyx Pharmaceuticals is 4.21 times more volatile than Haleon plc. It trades about -0.02 of its total potential returns per unit of risk. Haleon plc is currently generating about 0.05 per unit of volatility. If you would invest 747.00 in Haleon plc on August 27, 2024 and sell it today you would earn a total of 218.00 from holding Haleon plc or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amylyx Pharmaceuticals vs. Haleon plc
Performance |
| Timeline |
| Amylyx Pharmaceuticals |
| Haleon plc |
Amylyx Pharmaceuticals and Haleon Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amylyx Pharmaceuticals and Haleon Plc
The main advantage of trading using opposite Amylyx Pharmaceuticals and Haleon Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amylyx Pharmaceuticals position performs unexpectedly, Haleon Plc can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Haleon Plc will offset losses from the drop in Haleon Plc's long position.| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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